Can real estate brokerage company collect deposits of customers

Real estate transactions in recent years have often been carried out through intermediaries, real estate brokers. It can be seen that real estate brokerage will help customers and investors make transactions easier and faster. However, doing so through intermediaries also poses many hidden risks for the parties, especially in the matter of deposit. So, can real estate brokerage companies collect deposits from customers?

Real estate broker

According to Clause 2, Article 3 of the Law on Real Estate Trading 2023, regulations on real estate brokerage, accordingly, real estate brokerage means acts as an intermediary between parties in real estate sale, transfer, lease, sublease, lease purchase transactions..

Does a real estate brokerage company have the right to collect deposits from customers?

According to the provisions of Article 62 of the Law on Real Estate Business 2023, the content of real estate brokerage includes:

– Finding partners who meet the client’s conditions to participate in negotiations and contract signing.

– Acting as an authorized representative to perform tasks related to the procedures for buying, selling, transferring, leasing, subleasing, and lease-purchase of real estate.

– Providing information and support to parties in negotiating and signing contracts for buying, selling, transferring, leasing, subleasing, and lease-purchase of real estate.

Article 64 of the Law on Real Estate Trading 2023 stipulates that businesses and individuals providing real estate brokerage services have the following rights:

– For businesses:

• • To conduct real estate brokerage in accordance with the provisions of this Law;
  • To request relevant organizations and individuals to provide real estate documents and information for transactions;
  • To collect service fees from customers according to the agreement of the parties;
  • To refuse to broker real estate that does not meet the conditions for business;
  • To request relevant organizations and individuals to compensate for damages caused by their fault;
  • Other rights as stipulated in the contract.

– For individuals:

• • To conduct real estate brokerage in accordance with the provisions of this Law;
  • To request relevant organizations and individuals to provide real estate documents and information for transactions;
  • To refuse to broker real estate that does not meet the conditions for business;
  • Requiring relevant organizations and individuals to compensate for damages caused by their fault;
  • Receiving real estate brokerage fees and commissions as prescribed…

According to Article 65 of the Law on Real Estate Trading 2023, it regulates the obligations of businesses and individuals providing real estate brokerage services, specifically:

– For businesses:

• • Providing complete and truthful documentation and information about the real estate they broker and being responsible for the documentation and information they provide;
  • Organizing training and professional development for real estate brokers working in the business annually;
  • Fulfilling tax obligations to the State;
  • Compensating for damages caused by their fault;
  • Complying with reporting requirements as prescribed by law and being subject to inspection and audit by competent state agencies;
  • Other obligations as stipulated in the contract.

– For individuals:

• • Provide complete and truthful documentation and information about the real estate they broker and be responsible for the information they provide;
  • Fulfill tax obligations to the State;
  • Compensate for damages caused by their own fault;
  • Comply with the operating regulations of the real estate exchange or real estate brokerage business where the individual works;
  • Participate in annual training and professional development to improve their real estate brokerage skills.

Thus, real estate brokerage businesses are only allowed to perform intermediary services for parties wishing to buy, sell, transfer, lease, sublease, or lease purchase real estate and receive brokerage remunerations and commissions from these transactions. Collecting or receiving deposits for the conclusion and implementation of real estate transaction contracts is not within the scope of real estate brokerage content, nor is it included in the rights and obligations of real estate brokerage enterprises according to regulations of the law. The law does not have any specific regulations on whether real estate brokerage businesses have the right to collect deposits from customers.

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Above are the basic contents about whether real estate brokerage companies can collect deposits from customers based on the law at the time of writing. If you need advice on the above issue or are interested in other legal services, please contact LS Law Firm immediately via Email: lslawfirm2014@gmail.com for timely support.

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